Treasury Secretary Bessent says Fed rate cut ‘only missing ingredient’ for strong economy

On Thursday, Finance Minister Scott Bessent played down the administration’s desire to lower interest rates, saying it was key to future economic growth.

He will address the Minnesota Economic Club, Bessent endorsed the president Donald Trumpsaid that the economic agenda and simplified monetary policy will help pave the way for future gains.

“Lowering interest rates will have a significant impact on the lives of every Minnesotan,” he said, according to a quote from an administration source. “This is the only missing ingredient for even stronger economic growth. So the Fed should not delay.”

Federal Reserve approved three consecutive interest rate cuts In the last four months of 2025, it will reduce the main interest rate of the central bank to the limit of 3.5%-3.75%, amounting to 0.75 percentage points.

However, the rate of reduction is expected to slow down The market has already cut rates twice this year, and the latest forecasts from Fed officials point to just one.

One wild card in that equation is the Fed, which will have a new seat this year, a process Bessent will oversee. The current chairman Jerome PowellHis term expires in May, and the Treasury secretary has narrowed the candidates down to five. National Economic Council Chairman Scott Bessent and former Fed Governor Kevin Warsh the two betting favorites to get a position.

While low interest rates pose the risk of a resurgence of inflation, they may help support a slowing labor market.

“In 2025, the President laid the foundation for robust economic growth: “Historic passage of one big, beautiful bill, trade deals that rewrote decades of global inequality; and an ambitious deregulation agenda that will empower American entrepreneurs and businesses,” Bessent said. “Now, in 2026, we will see the fruits of President Trump’s America First agenda.”

Bessen will speak at 12:45 p.m.